Completing a legal framework to raise the effectiveness of luring moreforeign direct investment (FDI) in Vietnam is considered an importantmeasure to compensate for the decreasing capital flow trend.
FDI has played an important role in the country’s economicdevelopment, recording impressive achievements event during the economicturmoil that began around six year ago. The FDI sector contributes 20percent to the country’s GDP and has taken technology to higher levels,improved the quality of human resources and generated jobs.
Accordingto the Ministry of Planning and Investment (MPI), the country attracted3.3 billion USD in the first quarter of this year, half of the sameperiod last year’s figure.
However, this year’s total FDI willnot be lower than 2013, MPI Minister Bui Quang Vinh said, adding thatsome major projects are expected to be agreed in 2014.
Apart fromincreasing capital by attracting FDI, Vietnam also hopes to boost itstechnology transfer, which has not yet developed enough, Vinh said.
Accordingto a report reviewing 20 years of Vietnam’s FDI attraction, technologytransfer accounts only five percent of the total FDI projects.
FDIbusinesses in Vietnam, nevertheless, have had an impact onrestructuring the economy and sectors towards increase in competitivequality, the minister noted. The presence of FDI businesses usingadvanced technology has prompted domestic firms to improve their qualityand increase competiveness for their products, he added.
However, Vietnam will overly rely on foreign capital if the country does not pay due attention to domestic businesses.
Theminister said a focus on domestic businesses, including State-ownedenterprises and private firms, is important to the country’s developmentin the coming time.
The laws on enterprises and investment willbe revised to pave the way for domestic businesses, especially thosefrom the private sector, to develop, Vinh added.
In addition, aprovision on M&A is expected to be added in the revised InvestmentLaw in the near future, while a decree on PPP compiled by the MPI willbe introduced to the public in 2014, Vinh affirmed, adding that issuesrelating to M&A and PPP will help investment climate.-VNA
FDI has played an important role in the country’s economicdevelopment, recording impressive achievements event during the economicturmoil that began around six year ago. The FDI sector contributes 20percent to the country’s GDP and has taken technology to higher levels,improved the quality of human resources and generated jobs.
Accordingto the Ministry of Planning and Investment (MPI), the country attracted3.3 billion USD in the first quarter of this year, half of the sameperiod last year’s figure.
However, this year’s total FDI willnot be lower than 2013, MPI Minister Bui Quang Vinh said, adding thatsome major projects are expected to be agreed in 2014.
Apart fromincreasing capital by attracting FDI, Vietnam also hopes to boost itstechnology transfer, which has not yet developed enough, Vinh said.
Accordingto a report reviewing 20 years of Vietnam’s FDI attraction, technologytransfer accounts only five percent of the total FDI projects.
FDIbusinesses in Vietnam, nevertheless, have had an impact onrestructuring the economy and sectors towards increase in competitivequality, the minister noted. The presence of FDI businesses usingadvanced technology has prompted domestic firms to improve their qualityand increase competiveness for their products, he added.
However, Vietnam will overly rely on foreign capital if the country does not pay due attention to domestic businesses.
Theminister said a focus on domestic businesses, including State-ownedenterprises and private firms, is important to the country’s developmentin the coming time.
The laws on enterprises and investment willbe revised to pave the way for domestic businesses, especially thosefrom the private sector, to develop, Vinh added.
In addition, aprovision on M&A is expected to be added in the revised InvestmentLaw in the near future, while a decree on PPP compiled by the MPI willbe introduced to the public in 2014, Vinh affirmed, adding that issuesrelating to M&A and PPP will help investment climate.-VNA
